Arun Jaitley's promises for startups and small businesses in #Budget2016

According to industry experts, Arun Jaitley's budget proposal to offer tax exemptions for small businesses with a turnover of up to Rs 2 crore - twice the previous limit - may encourage them to expand and do business fairly.

"When SMEs expand production, they fall off the tax exemption bracket which is a major deterrent for growth," Ajay Sahai, director-general of the Federation of Indian Export Organisations told The Economic Times.

"The increased exemption limit ... will enable them to not only increase production, but also invest in modern technologies so as to become more competitive in the market," Sahai said. The report also said that small and medium enterprises (SMEs) in India are currently in a tough spot due to increasing imports from countries like China.

The decision will benefit a large number of SMEs including retailers and shop keepers.

While unveiling his budget for fiscal 2016-17, Finance Minister Arun Jaitley said 33 lakh small businesses avail of tax benefits under this scheme at present.